As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
Statistics updated on 8/27/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns Second Edition
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Pennants are the workhorses of the day trader. They perform an invaluable service by marking the midway point in a move. However, they only work in this manner about 30% of the time (see the measure rule).
Pennant Chart Pattern
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The above numbers are based on more than 1,600 perfect trades. See the glossary for definitions.
* The performance results for pennants are based on the short-term price swing, not the change from the breakout to the ultimate high or low as in most other chart patterns.
| Characteristic | Discussion |
| Price trend | Can be any direction leading to the chart pattern. |
| Shape | Looks like a short symmetrical triangle. |
| Trendlines | Prices move between two converging trendlines. |
| 3 weeks | Pennants are short, 3 weeks long or less. Patterns longer than that are symmetrical triangles, rising or falling wedges. |
| Flagpole | The flagpole which leads to the pennant should be unusually steep and last several days. |
| Volume trend | Downward trend 86% of the time. |
| Breakout | Upward 57% of the time. |
| Trading Tactic | Explanation | 
The Measure Rule
Half Staff 
Pennant Tilt 
Tight v. Loose |
| Measure rule | Compute the height from the start of the price swing (point A in the measure rule figure to the right) to the end of the price swing (B) and then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) to the bottom of the pennant (C) or subtract it (downward breakouts) from the top of the pennant (C) to get the target (D). | |
| Half staff | The average time from the trend start (below the pennant) to the start of the pennant is 11 days. Price rises (from the close at trend start to pennant high) 19% over that period. The time after the pennant (pennant end to trend high) is 10 days to rise (pennant low to trend high) 14%. Thus, the trend before and after the pennant takes about the same time but price does not rise as far after the pennant. In fact, the trend after the pennant is equal to or longer than then inbound trend just 30% of the time. The half staff figure to the right shows an example of how pennants are supposed to work, with A equal to B. | |
| Pennant tilt | Performance suffers when the pennant slopes in the direction of the prevailing price trend. The Pennant Tilt figure to the right shows an example of price tilting upward in a rising price trend. | |
| Flat base | If the pennant appears above (upward breakouts) or below (downward breakouts) a flat base then expect the move to be a large one. | |
| Tight pennants | A tight pennant performs better than a loose one. A loose pennant is one in which price meanders, pokes outside the trendline boundary, contains white space, or looks jagged. The Tight v. Loose figure to the right shows an example. | |
| Yearly low | Pennants perform best within a third of the yearly low for downward breakouts only. |
The above figure shows an example of a pennant chart pattern. The flagpole begins at point A and completes at B. Following that, the pennant appears from B to C, bounded by two converging trendlines then the decline resumes and bottoms at D.
-- Thomas Bulkowski
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